RE:RE:RE:RE:Question for the Board what will be Risk Management Loss Q4?The average prices for oil will be higher in the Fourth Quarter.
Pursuing 2% declines in Kakwa which is the majority of the companies liquids and their highest netback boes, simply makes no sense when the CFO is creating billions in Hedging losses. That will impact the earnings for years. Really ARX management is throwing the operational guys under the bus, reduce production costs so that Bibby can loose more with a poor hedging strategy.
Addional producion at Kakwa would reduce the direct impact of their hedging losses on the overall production, if the overall production went up 10% meaning then relative to the higher overall production hedging losses would be a smaller percentage of the overall production.
In short the company would have higher earnings.
IMHO